Hey there, Matt_cpa.
Thanks for reaching out here in the Community. I'm happy to provide some info to answer your questions about job costing payroll in QuickBooks Online.
You asked if the payroll expense be allocated to the project based upon the pro-rated hours; Yes, QuickBooks Online can allocate actual payroll expenses to projects based on the hours tracked in timesheets. Good news is you already have the required QuickBooks Online Payroll Elite with Projects and time-tracking features enabled.
A brief overview of the process goes like this:
- Employees will log their time using weekly timesheets (or QuickBooks Time). Each entry needs to be assigned to the relevant project and customer so QuickBooks knows how many hours to "prorate" to each job.
- When you run payroll, QuickBooks Online (QBO) automatically pulls the time data from the timesheets. It then uses this info to calculate paychecks.
- Once paychecks are processed, the actual labor costs, including wages, taxes, and other payroll expenses, are allocated to the associated projects.
- You can then view the actual labor costs on the Project Overview tab by selecting the "Payroll Expenses" view.
The following article provides additional details about tracking hourly labor costs and profitability by project in QuickBooks Online.
Please don't hesitate to drop a comment below if you have any other questions. I'll be here to lend a hand.
